I
n a post-pandemic trend, another Manhattan office building has been earmarked for conversion into residential units. The 26-story Financial District tower at 77 Water St. will reportedly be transformed by Big Apple-based real estate firm Vanbarton into around 600 rental apartments.

    The company is set to pay approximately $95 million for the 1970s-built tower, with a deal expected to close before the year's end. The building has previously been home to notable tenants such as AT&T and Goldman Sachs.

    With over 546,000 square feet of usable office space, the Water Street property boasts amenities like an open plaza area and a Wild West-style candy store within its walls. However, with employees increasingly working remotely and an affordable housing crisis gripping the city, transforming empty or under-used office spaces has become a popular tactic.

    Over 60 New York City office buildings are currently undergoing conversions into homes, with some more feasible than others. "If your building is wide open and empty, there's a clear path," said Gerard Nocera of Resolution Real Estate. However, buildings with long-term leases can be much harder to rework.

    This trend is evident in the case of the iconic Flatiron Building, which has recently had residential plans filed for it. As employees continue to work remotely and demand for affordable housing grows, office-to-residential conversions are likely to become a more prominent feature of New York City's real estate landscape.